BUSI401 CHAPTER 1 Flashcards
DBB
Design Phase
In this phase the owner retains an architect (or consulting engineer for infrastructure works) to design and produce bid documents, including construction drawings and technical specifications, on which various general contractors will in turn bid to construct the project. For building projects, the architect will work with the owner to identify the owner’s needs, develop a written program documenting those needs and then produce a conceptual and/or schematic design. This early design is then developed, and the architect will usually bring in other design professionals including mechanical, electrical, and plumbing engineers (MEP engineers), a fire protection engineer, structural engineer, sometimes a civil engineer and often a landscape architect to help complete the construction drawings and technical specifications. The finished bid documents are coordinated by the architect and owner for issuance to general contractors during the bid phase. Design fees are typically between 5-10% of the total project cost
DBB
Design Phase
In this phase the owner retains an architect (or consulting engineer for infrastructure works) to design and produce bid documents, including construction drawings and technical specifications, on which various general contractors will in turn bid to construct the project. For building projects, the architect will work with the owner to identify the owner’s needs, develop a written program documenting those needs and then produce a conceptual and/or schematic design. This early design is then developed, and the architect will usually bring in other design professionals including mechanical, electrical, and plumbing engineers (MEP engineers), a fire protection engineer, structural engineer, sometimes a civil engineer and often a landscape architect to help complete the construction drawings and technical specifications. The finished bid documents are coordinated by the architect and owner for issuance to general contractors during the bid phase. Design fees are typically between 5-10% of the total project cost
The main advantage of DB projects is that ____________ . The owner can then focus on ________ and _________ rather than _____________.
The main advantage of DB projects is that the owner receives the completed project for a defined price – meaning the risk of cost over-runs is lessened. The owner can then focus on the design parameters and scope of work rather than construction management activities.
The principal factors that will influence the budget for hard costs are _ _ _ _ _ _ _
The principal factors that will influence the budget for hard costs are labour costs and labour availability, costs for materials such as steel, concrete, and lumber and unforeseen weather and site conditions during construction.
DESIGN-BUILD
One may ask: If this approach is so attractive, why is it not more common in commercial building construction?
Here are main reasons: The owner has less control over the quality of the delivered building since the Design-Builder is free to adopt value engineering solutions identified by sub-contractors.
The owner’s architect has little input into the project once the Design-Build contract is awarded.
Shorter-lived building components may be installed.
DESIGN-BUILD
One may ask: If this approach is so attractive, why is it not more common in commercial building construction?
Here are main reasons: The owner has less control over the quality of the delivered building since the Design-Builder is free to adopt value engineering solutions identified by sub-contractors.
The owner’s architect has little input into the project once the Design-Build contract is awarded.
Shorter-lived building components may be installed.
Design–bid–build (or design/bid/build, and abbreviated D–B–B or D/B/B accordingly), also known as Design–tender (or “design/tender”), is a project delivery method in which the agency or owner contracts with separate entities for the design and construction of a project. Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build. There are three main sequential phases to the design–bid–build delivery method:[1] The design phase The bidding (or tender) phase The construction phase / Design–bid–build (or design/bid/build, and abbreviated D–B–B or D/B/B accordingly), also known as Design–tender (or “design/tender”), is a project delivery method in which the agency or owner contracts with separate entities for the design and construction of a project. Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build. There are three main sequential phases to the design–bid–build delivery method:[1] The design phase The bidding (or tender) phase The construction phase
Design–bid–build (or design/bid/build, and abbreviated D–B–B or D/B/B accordingly), also known as Design–tender (or “design/tender”), is a project delivery method in which the agency or owner contracts with separate entities for the design and construction of a project. Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build. There are three main sequential phases to the design–bid–build delivery method:[1] The design phase The bidding (or tender) phase The construction phase / Design–bid–build (or design/bid/build, and abbreviated D–B–B or D/B/B accordingly), also known as Design–tender (or “design/tender”), is a project delivery method in which the agency or owner contracts with separate entities for the design and construction of a project. Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build. There are three main sequential phases to the design–bid–build delivery method:[1] The design phase The bidding (or tender) phase The construction phase
DBB is the most common approach to commercial design and construction.
DBB is the most common approach to commercial design and construction.
Hard costs are sometimes referred to as “bricks and mortar” expenses and cover all items that you can visibly see at the construction site. Examples of these expense items include the following:
General Conditions
Mobilization, demobilization, temporary facilities
Construction facilities: site office and staff, vehicles, communications
Temporary materials and works: formwork and supports,
drainage control, de-watering
Equipment rentals
Rental and development of off-site construction staging areas
Construction Costs
Excavation and construction of the sub-structure, including materials, labour, and mobilization of equipment. Dumping and transportation fees for excavated materials
Construction of the super-structure, including materials, labour, etc. − Installation of mechanical, electrical, safety, and ventilation systems
Installation of interior finishing
Commissioning, testing, and government approval of the building envelope and building systems
Landscaping, surface parking, interior roads and lighting, exterior site grading, and other exterior amenities
Hard costs are sometimes referred to as “bricks and mortar” expenses and cover all items that you can visibly see at the construction site. Examples of these expense items include the following:
General Conditions
Mobilization, demobilization, temporary facilities
Construction facilities: site office and staff, vehicles, communications
Temporary materials and works: formwork and supports,
drainage control, de-watering
Equipment rentals
Rental and development of off-site construction staging areas
Construction Costs
Excavation and construction of the sub-structure, including materials, labour, and mobilization of equipment. Dumping and transportation fees for excavated materials
Construction of the super-structure, including materials, labour, etc. − Installation of mechanical, electrical, safety, and ventilation systems
Installation of interior finishing
Commissioning, testing, and government approval of the building envelope and building systems
Landscaping, surface parking, interior roads and lighting, exterior site grading, and other exterior amenities
The estimated total cost of a new building, or the reproduction cost in appraisal terms, includes land cost, hard costs, and soft costs. Where the building project is completed by a developer with the intention of lease-up and/or sale upon completion, there is additional allowance known as developer’s profit.
Developer’s profit is not typically included in budgeted construction costs and is not generally applicable where the owner is developing the building for owner-occupation.
The estimated total cost of a new building, or the reproduction cost in appraisal terms, includes land cost, hard costs, and soft costs. Where the building project is completed by a developer with the intention of lease-up and/or sale upon completion, there is additional allowance known as developer’s profit.
Developer’s profit is not typically included in budgeted construction costs and is not generally applicable where the owner is developing the building for owner-occupation.
DESIGN-BUILD // One may ask: If this approach is so attractive, why is it not more common in commercial building construction? Here are main reasons:
The owner has less control over the quality of the delivered building since the Design-Builder is free to adopt value engineering solutions identified by sub-contractors.
The owner’s architect has little input into the project once the Design-Build contract is awarded.
Shorter-lived building components may be installed.
DESIGN-BUILD // One may ask: If this approach is so attractive, why is it not more common in commercial building construction? Here are main reasons:
The owner has less control over the quality of the delivered building since the Design-Builder is free to adopt value engineering solutions identified by sub-contractors.
The owner’s architect has little input into the project once the Design-Build contract is awarded.
Shorter-lived building components may be installed.
The main advantage of DB projects is __________– meaning the risk of _____ is lessened. The owner can then focus on the design parameters and scope of work rather than _____________________. In this model, the project risks are largely transferred to the ____________ – especially in a stipulated price contract.
The main advantage of DB projects is that the owner receives the completed project for a defined price – meaning the risk of cost over-runs is lessened. The owner can then focus on the design parameters and scope of work rather than construction management activities. In this model, the project risks are largely transferred to the Design-Builder – especially in a stipulated price contract.
Structural drawings include _ _ _ _ _
Structural drawings include: Foundation, superstructure, equipment supports
Early in the design process a developer will typically engage an architect to refine the design concept and begin conceptual drawings, also known as __________.
Early in the design process a developer will typically engage an architect to refine the design concept and begin conceptual drawings, also known as RENDERINGS
This is a contract between owner and contractor to complete the work required for a pre-determined fixed price or lump sum, regardless of the contractor’s actual cost.
Stipulated Price Contract
A Design-Build contract has the design and construction aspects contracted to a single entity known as the ______________________
A Design-Build contract has the design and construction aspects contracted to a single entity known as the design-builder or design-build contractor.
Contractor’s profit and overhead may either be specified as a separate item or embedded within hard costs. Contractor’s overhead includes _ _ _ _ _ _
Contractor’s profit and overhead may either be specified as a separate item or embedded within hard costs. Contractor’s overhead includes costs for permanent office and staff, equipment, insurance bonding and surety costs, submittals for progress reports, material samples, permits, and so on.
In Design-Build, “the contract lies with one person, there is single point responsibility. The contractor engages a design team, which completes the detailed design and then produces the construction information. Since the contractor manages design and construction, it is common for construction to start without the design being completed. Information is provided to the contractor as it becomes available and delivery stays ahead of the construction programme.”
In Design-Build, “the contract lies with one person, there is single point responsibility. The contractor engages a design team, which completes the detailed design and then produces the construction information. Since the contractor manages design and construction, it is common for construction to start without the design being completed. Information is provided to the contractor as it becomes available and delivery stays ahead of the construction programme.”
The main advantage of DB projects is that ____________ . The owner can then focus on ________ and _________ rather than _____________.
The main advantage of DB projects is that the owner receives the completed project for a defined price – meaning the risk of cost over-runs is lessened. The owner can then focus on the design parameters and scope of work rather than construction management activities.
The principal factors that will influence the budget for hard costs are _ _ _ _ _ _ _
The principal factors that will influence the budget for hard costs are labour costs and labour availability, costs for materials such as steel, concrete, and lumber and unforeseen weather and site conditions during construction.
There are typically three different forms of contract between the owner and contractor in the Traditional Design-Bid-Build model:
Stipulated Price Contract
Cost Plus Contract
Unit Price Contract
In a DESIGN-BUILD model, the project risks are largely transferred to the ________
DESIGN BUILDER
Specifications are typically formatted in a very specific way defined by the _____________.
According to this system, the work is divided up into Divisions. There are up to 33 different Divisions: Division 1 covers General Requirements, Division 3 covers Concrete, Division 5 is Metals, etc.
The Format outlines a set order, title, and section for each typical specification item.
Standardization of construction documents allows all parties to focus on the exceptions and it reduces the amount of time required to become familiar with a project. This is very important in an industry as fragmented as construction.
Specifications are typically formatted in a very specific way defined by the National Master Specification - Master Format. According to this system, the work is divided up into Divisions.
While the architectural renderings will often not represent the final building design, they serve an important purpose in ____________
While the architectural renderings will often not represent the final building design, they serve an important purpose in communicating the developer’s concept to government, investors, potential tenants, and other stakeholders such as local residents.
These are released to bidders.
Drawings and Specifications Issued for Tender or Pricing
_______ is the most common approach to commercial design and construction. The owner takes responsibility for architectural drawings, bid specifications, and solicitation of a general contractor.
DBB is the most common approach to commercial design and construction. The owner takes responsibility for architectural drawings, bid specifications, and solicitation of a general contractor.
TRUE? FALSE? There is usually no significant benefit for DBB where the commercial building is relatively simple in design, such as a warehouse or conventional office building.
ANSWER: TRUE
Soft costs include _ _ _ _
Soft costs include expenses related to rezoning and development planning, architect’s fees, civil engineering and other consulting reports, real estate appraisal, financing fees, local government development cost charges, property taxes, sewer and water and utility connection fees, and loan interest during construction and loan fees.
The goal of the architect and APC is to ________________
The goal of the architect and APC is to fine-tune the design so that it is more likely to receive final approval by the designated local government officials and, in many cases, by the municipal council.
TRUE?FALSE? With a Design Build project the owner has less control over the quality of the delivered building since the Design-Builder is free to adopt value engineering solutions identified by sub-contractors.
ANSWER: TRUE